We are launching a service = a pateneted technique to harvest rainwater, wherein we will be billing the Franchsiees for two items: i.e. (1) Royalty for patent for per unit structure = Rs. 8000 on which Service Tax is chargeable @ 10.3%; (2) A special PVC Sheet for per unit structure =Rs. 2500 on which MVAT is chargealbe @ 4%.
We are purchasing PVC Sheet on which Excise Duty+ Ed. Cess+ Sec Ed Cess is paid.
Now the query is: Whether the Excise Duty paid on this purchase can be used for set-off against Service Tax payable on the Royalty ??
CAclubindia
